Appellate Tribunal stays sale of Electrosteel to Vedanta

The National Company Law Appellate Tribunal has stayed Vendata Resources’ acquisition of Electrosteel Steels under the bankruptcy procedure following an appeal by bidder Renaissance Steel, that had questioned the evaluation process adopted by the resolution professional.

The appellate tribunal on Monday ordered all parties to maintain status quo and directed resolution professional (RP) Dhaivat Anjaria to explain how VedantaN was declared the winning bidder. It also directed the committee of creditors to Electrosteel to file a comparative matrix of the bidders within 10 days.

“Lenders will have to justify on what basis Vedanta was selected over others; the process followed and the evaluation process on arriving at how is the bidder,” said a senior person aware about the development. Read More